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Corporate Affairs Commission places First Bank record on caveat as board crisis worsens
Corporate Affairs Commission places First Bank record on caveat as board crisis worsens
. As ex-AMCON chair accuses bank of promoting illegality and disobedience to court orders
By: Michael Mike
The Corporate Affairs Commission, CAC, has placed the record of First Bank of Nigeria (FBN) Holdings on caveat pending the resolution of the current crisis rocking the board of the bank as a result of multiple court cases filed by aggrieved directors.
The current crisis rocking the bank stems from protests by shareholders who are kicking against the bank’s internal governance and shareholding structure, as a result of which some of them have taken their grievances to the court. One of such is the case of Olusegun Samuel Onagoruwa v. FBN Holdings Plc in Suit No. FHC/L/CP/1271/2022), which is challenging the capacity of the Board of Directors of FBN to appoint new persons to fill vacant slots.
Onagoruwa in his suit is seeking “an order setting aside, nullifying, annulling and/or quashing the appointments and approvals of Mr. Olusola Adeeyo, Mr. Viswanathan Shankar, Mrs. Remilekun Adetola, Mr. Anil Dua and Mrs. Fatima Ibrahim as Non-Executive Directors of First Bank of Nigeria Limited made on the 20th day of March, 2024, by FBN Holdings Plc during the pendency of this action and in defiance of the subsisting order of this Honourable Court made on the 15th day of July, 2022.”
The motion also seeks an order restraining the above-named non-executive directors from acting or taking any steps as non-executive directors of the bank. The current court case follows similar four other cases pending at the Federal High Court in Lagos and Abuja challenging the internal governance of FBN Limited, in addition to existing court injunctions restraining the bank from holding the last two Annual General Meetings which the bank went ahead to hold.
In a new twist to the crisis, the Corporate Affairs Commission in a letter titled
“RE: NOTIFICATION OF PENDENCY OF SUIT NO. FHC/L/CP/1575/23 AGAINST FBN HOLDINGS PLC, AND SUBSISTING INTERIM ORDERS OF THE FEDERAL HIGH COURT MADE ON THE 9TH DAY OF AUGUST 2023 RESTRAINING FBN HOLDINGS PLC FROM HOLDING OR PROCEEDING WITH ITS ANNUAL GENERAL MEETING PURPORTEDLY HELD ON THE 13TH DAY OF AUGUST 2023”, weighed in on litigations threatening to tear the old generation bank apart.
Signed on behalf of the Registrar General of CAC by Chidimma Maureen Nwite, the Commission in a letter to lawyers to some of the parties in court against FBN Holdings said
“This is to inform you that the record of FBN Holdings PLC RC: 916455 has been placed on caveat pending the determination of Suit No. FHC/L/CS/1575/2023.
Please be guided accordingly.”
Speaking on the multiple crises rocking the foundation of First Bank, a former Chairman of Asset Management Corporation of Nigeria, AMCON and Senior Advocate of Nigeria, Dr. Muiz Banire accused the first generation financial institution of promoting illegality and flagrant disobedience of court orders, a development shareholders fear poses major threat to the bid by the bank to strengthen its capital base in line with the recent directive of the Central Bank of Nigeria to all banks operating in the country to recapitalize.
Banire who is involved in one of the court cases said “the Bank seems to now have a reputation of defying court orders. What I just read is similar to the case Iam handling also. The Bank appears to be building a reputation of lawlessness and by the time it boomerangs, the bank and by extension the shareholders will bear the brunt. I am sure the plaintiffs will not allow them to get away with the illegality. The case of the bank is becoming a bubble.”
He further said “I also believe the CBN is aiding and abetting the Board of Directors the apex bank imposed. Everything the Board is doing is beyond their mandate. The Apex Bank needs to dissolve the Board and allow the shareholders to choose their Directors. It is one illegality after another.”
According to one of the workers union leaders in the bank, “as the tenure of the imposed directors is expiring, the same illegitimate Management of FBN, whose legitimacy is being challenged, has gone further, during the pendency of the cases challenging their competence to lead the bank, to arbitrarily appoint further five independent directors. Where they derived the power from remains a mystery.
“Mismanagement and manipulation of shares are also being alleged in some of the cases pending against the bank while the legality of the AGMs and the imposed board of directors remain a challenge.” The union leader expressed the fear that the spate of litigations and board squabbles currently rocking the bank may bring a quick collapse of the over 100-year- old bank.
Also speaking on the development, a shareholder, Mr. Olalekan Babalola, said “it is imperative for the authorities to find a solution to this lingering crisis as Nigeria cannot afford another major bank’s collapse at this critical time when President Bola Tinubu is working hard to revamp the nation’s crumbling economy. This is because the current crisis will definitely impede the bank from getting the new Central Bank’s capitilisation threshold.”
He called for urgent resolution of all court cases in the overall interest of depositors, shareholders and other stakeholders of the bank before further damage is done to the oldest Nigerian bank.
Corporate Affairs Commission places First Bank record on caveat as board crisis worsens
Nigeria, Egypt Work at Improving Volume of Trade
By: Michael Mike
Egyptian Ambassador to Nigeria, Mohamed Fouad has decried the volume of trade between Egypt and Nigeria which stood at $190 million in 2023, stating that conceited efforts are already on to improve it.
Speaking at the commemoration of Egypt’s 72nd anniversary of the 23rd July Revolution in Abuja, the envoy who expressed suprise at the level of bilateral relations between both countries, said he was however glad that deliberate efforts are on to improve on it going forward.
He said two major programmes have been lined up as part of the efforts to improve interactions between both countries.
He noted that bilateral political consultations scheduled to hold in Nigeria during the last quarter of the year and the business council in September, are aimed at bettering the relations between the two countries.
He said: “In terms of volume of trade I have the numbers of 2023, $190 million as I said, these figures does not live up to the economic potential of both countries.
In short, this is why we’re trying to focus and to live up to our potential as the biggest countries in the continent.”
He added, “Today, Egypt and other African countries strive to address challenges that are not less enormous than those they en countered during the struggle for independence.
“These challenges include the need to invest in human capital, energy transition, and infrastructure development, bolster economic growth and create jobs, combat terrorism and extremism, and empower youth and women.
“In this connection, Egypt and Nigeria have been redefining their longstanding historic ties.
“Our peoples and governments are tapping into their enormous economic and cultural potentials as we envisage the next chapter of our solid partnership. From security, countering-terrorism, to energy, communications, digital transformation, trade, and infrastructure, to agriculture, health care and modern education, our two countries are proceeding with determination on the path to forge a modern and forward-looking partnership anchored in our common values and shared objectives.
“Against this backdrop, we are gearing up – together with our Nigerian colleagues – to hold the third round of our bilateral political consultations in Abuja during the last quarter of this year. We also look forward to the upcoming meeting of the Egypt-Nigeria Business Council in Lagos next-door September, which will help connect the business communities of our two countries, providing them with the opportunity to explore possible ways and means to enhance our bilateral trade and investments relations.”
Nigeria, Egypt Work at Improving Volume of Trade
Nigeria: Police speak on two murder cases in Borno
By: Our Reporter
The Borno State Police Command has arrested a 24-year-old young man, Usakahyel Adamu, for killing his 90-year-old grandfather, Yakubu Ibrahim.
The Police Public Relations Officer (PPRO), DSP Nahum Daso, said the incident occurred on July 7, 2024, at about 1600 HRS.
According to the police, One Adamu Yakubu ‘M’ of Paga Gusi Village Kwaya-Kussar L.G.A. reported at Kwaya Kusar Police Station that, on the same date, at about 1400 HRS, his son, Usakahyel Adamu ‘M’ 24 years old, used a hoe and hit his grandfather, Yakubu Ibrahim ‘M’ 90 years old, on the head. As a result, he sustained a serious injury and died on the spot.
“Investigation further revealed that the said Usakahyel had an altercation with his grandfather on the allegation that his grandfather was insulting him and pushing him without any reasonable cause. The suspect has been arrested, and the hoe was recovered and registered as an exhibit. The suspect will be charged with the DPP for legal advice and prosecution,” ASP Daso said.
He also said that “on the 4th of July, 2024, at about 0430 HRS, one Bulama Mulikabu M’ of Kautikari Village, Chibok LGA, reported at Chibok Police Station that on the same date, at about 0700 HRS, one Lydia Aji F’, 40 years old, and her husband, one Aji Makinta M’, had a violent fight, which resulted in the wife Lydia Aji striking her husband on the head with an axe, and he died on the spot.”.
He further explained that “investigation further revealed that the couples had a misunderstanding over their daughter, Rachael Aji, 13 years old, who stole a goat and sold it to an unknown person. The angry father then asked them to leave his house. The case is still under investigation.”
Nigeria: Police speak on two murder cases in Borno
Governor Buni suspends the chairman of Machina LG in Yobe
By: Yahaya Wakili
The Governor of Yobe State, Hon. Mai Mala Buni CON, has approved the suspension of the Chairman of Machina local government council, Hon. Idrissa Mai Bukar Machina, with immediate effect due to the act of misconduct and insubordination.
This was contained in a release issued by Alhaji Shuaibu Abdullahi, Press Secretary to the Secretary to the State Government, which was shared with newsmen in Damaturu, the Yobe state capital,.
His Excellency, Governor Mai Mala Buni, has, in the exercise of the powers conferred on him by Section 2 of the local government law (as amended) of 2019, approved the suspension with immediate effect.
The statement further revealed that, subsequent to the above, His Excellency has also directed the suspended chairman to hand over the affairs of the local government council to the vice chairman pending further directives.
Governor Buni suspends the chairman of Machina LG in Yobe
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